The Impending Collapse of Greece

The worse thing that will occur when Greece totally collapses for the USA is the financial ripple effect. And its coming. Although, Germany has bailed them out yet again, the Greek austerity measures are like a knife cutting into the jugular: The patient will not survive.

Before Greek succeeds, people will be in anarchy because the life they once knew is gone. Some 30,000 public service jobs will be at reduced pay, public sector salaries will be cut 40%, pensions will be slashed, 65 government agencies with close, State assets valued at $67 billion will be privatized including the Hellenic bank.

The Greek deficit is 18 billion euros, and is in its third year of recession. Yet, the Greeks themselves, knowing the dilemma they are in, amazingly continue to strike causing work stoppages daily from doctors to bus drivers in the public sector.

The reluctant Germans are the only ones willing to bail them out, or at least try, with a loan of nearly $9 billion, yet, most fear that Greece has no capability of repaying it when due. If Greece collapses, the domino effect may begin with Italy, Portugal, Spain. America has so many financial connections to Europe, there is little doubt we will also feel the effects on our own fragile economy.

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davenmidtown 5 years ago from Sacramento, California

Interesting... what do you think these events will do to an already inflated gold value? I am curious if you think that the world is unable to hold together a global economy a midst all of the difference in governments, religion and technology?


vrajavala profile image

vrajavala 5 years ago from Port St. Lucie

correct me if I'm wrong, but many foreign countries got caught up I'n the US derivatives market. After the repeal of the Glass Steagall Act I'n 1999, US banks could now engage I'n lots of risky transactions, especially with regards to the housing market. I believe that one country, India, did not get involved, and their Stock Exchange is very stable.

We need to re-instate Glass Steagall, it kept banks safe fir 60 years.

Also, hedge funds and the "uptick rule". Need to be erased.

Good hub.

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